EARNINGS PER SHARE
We compute basic earnings per share for Common Stock and Class B common stock using the two-class method. The Class B common stock is convertible into Common Stock on a share-for-share basis at any time. The computation of diluted earnings per share for Common Stock assumes the conversion of Class B common stock using the if-converted method, while the diluted earnings per share of Class B common stock does not assume the conversion of those shares.
We compute basic and diluted earnings per share based on the weighted-average number of shares of Common Stock and Class B common stock outstanding as follows:
For the years ended December 31,202520242023
Common StockClass B Common StockCommon StockClass B Common StockCommon StockClass B Common Stock
Basic earnings per share:
Numerator:
Allocation of distributed earnings (cash dividends paid)$813,321 $271,975 $812,826 $271,975 $663,176 $225,895 
Allocation of undistributed earnings
(151,372)(50,665)851,549 284,889 728,175 244,541 
Total earnings—basic$661,949 $221,310 $1,664,375 $556,864 $1,391,351 $470,436 
Denominator (shares in thousands):
Total weighted-average shares—basic148,281 54,614 148,349 54,614 149,499 55,239 
Earnings Per Share—basic$4.46 $4.05 $11.22 $10.20 $9.31 $8.52 
Diluted earnings per share:
Numerator:
Allocation of total earnings used in basic computation$661,949 $221,310 $1,664,375 $556,864 $1,391,351 $470,436 
Reallocation of total earnings as a result of conversion of Class B common stock to Common stock221,310 — 556,864 — 470,436 — 
Reallocation of undistributed earnings124 — — (753)— (987)
Total earnings—diluted$883,383 $221,310 $2,221,239 $556,111 $1,861,787 $469,449 
Denominator (shares in thousands):
Number of shares used in basic computation148,281 54,614 148,349 54,614 149,499 55,239 
Weighted-average effect of dilutive securities:
Conversion of Class B common stock to Common shares outstanding54,614 — 54,614 — 55,239 — 
Employee stock options181 — 285 — 424 — 
Performance and restricted stock units303 — 239 — 385 — 
Total weighted-average shares—diluted203,379 54,614 203,487 54,614 205,547 55,239 
Earnings Per Share—diluted$4.34 $4.05 $10.92 $10.18 $9.06 $8.50 
The earnings per share calculations for the years ended December 31, 2025, 2024 and 2023 excluded 27, 13 and 15 stock options (in thousands), respectively, that would have been antidilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 17, 2021
2019Feb 20, 2020
2018Feb 22, 2019
2017Feb 27, 2018
2016Feb 21, 2017
2015Feb 26, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.